GoDaddy slips after RBC downgrades rating on AI disruption fears

GoDaddy

12/10/2026 09:50

** Shares of internet services provider GoDaddy GDDY.N down 1.29% at $103 in premarket trading after RBC Capital Markets downgrades to "sector perform" from "outperform" rating, citing AI-driven disruptions
** Brokerage says AI agents and vibe coding platforms could reroute customer purchases away from GDDY's traditional domain-to-hosting funnel, even as it sees traction in the co's Airo platform and new APIs
     ** "As agents increasingly scan, compare, and execute across vendors in seconds, that asymmetry narrows, and we think the business's current margin structure could face headwinds as agentic commerce makes wholesale economics more visible to a broader set of buyers," adds RBC
** Brokerage sets PT of $95, representing ~9% downside to the stock's last close of $104.35
** 8 of 19 brokerages rate the stock "buy" or higher, 10 "hold" and 1 "sell" or lower; their median PT is $100 - LSEG-compiled data
** As of last day's close, stock down 15.9% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))